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tv   FOX Business After the Bell  FOX Business  March 22, 2013 4:00pm-5:00pm EDT

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it's not rocket science. it's just common sense. from td ameritrade. >> well the dow is on track to end the week in the red overall, but still we have some winners this week. in fact the second best performer is coca-cola as a matter of fact. up by about 3% for the entire week. it did say that it is cutting 750 jobs in the united states. it is streamlining its business as they always put it. and the biggest winner on the dow for this week is hewlett-packard. hp up more than 3 1/2% for the week. the board over there approved a 10% dividend increase and did that yesterday. so that gives you an idea of some of the individual stocks that are doing well in the dow. we'll close in the green today. as i said for the week looks like we're still down as we
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wrap things up on the "countdown to the closing bell". the combination of david asman and shibani joshi. david: we like this combination you've been asleep past hour because it is 2:00 a.m. your time. >> viewers noticed i did sleep. david: good to have you here, shibani. sandra smith as we close out the day. apple for a second. slow comeback of apple over next couple weeks. >> it has been a very sneaky stock to watch at $460 a share right now. the talk was all about the steep selloff. up three straight weeks. another big gain of about nine bucks today. this would be the third straight week of gains. longest win streak in six months, david and shibani. shibani: sandra, a reversal of fortune for blackberry shares. they started the day up 3%. now in the exact opposite
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direction. >> not so much the case right now as you can see finishing near the lows of the session. a lot of concern about the new launch. at&t didn't really to feature it in its windows at stores. we're only hearing lines of about 20 people showing up to buy the new blackberry. closing bell rings] david: shibani joshi knows more about blackberries than anybody i know. we'll talk about that this hour in addition to a lot of other stocks. let's focus on the markets. wow! we're closing on the upside of this market. 91. this thing is settling up. that is always a good scientific larly on a friday afternoon when a lot people don't want to get short over the weekend. there is optimism and it is unrestrained and no matter what you throw at this market it always seems to find the upside of things. all the indices are in the green, some of them significantly so. dow is on the upside. s&p is up slightly larger percentage wise. that is almost a .75 of a
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percent gain. nasdaq. up 22. russell 2000, about a quarter of a percent duane. -- gain. all the indices up today, shibani. shibani: two tech stocks making their wall street debut. marin software, ad tracking company soared in its debut up 2%. on the flipside, conference call specialist west corp ended lower by 5 1/2%. david: if you follow fedex, even though they ship stuff around they're known as a transport stock. the transports were a big mover have. the group was led higher by old dominion freight which raised its estimate for growth in the first quarter. after a tumultuous week fedex did see a small rebound. it is a little delow 100 but.
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shibani: good news in the consumer sector. nike rallying double digits hitting a new 52-week high today after reporting strong global sales and then the little blue box, tiffany's ending the day in the green as the company reiterated its fourth quarter outlook. "after the bell" starts right now. david: well the euro kratz that they confiscate money sets up potentially dangerous road ahead not for the europeans but also not just the eurozone headed into murky waters. the idea this could happen here is still a haunting one, one that will be addressed by steve forbes in this hour. steve forbes, "forbes" media chairman and editor-in-chief weighs in. shibani: we'll look forward to that. after hurricane sandy ravaged downtown manhattan signs of spring are emerging
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not necessarily in the weather but the housing market. real estate sales in the area sky vapering -- skyscrapering high. this developer had 600 million in sales this month alone. can you believe the commission on that. david: resilience lower manhattan never ends. stocks pushing higher, bouncing back from the biggest drop in nearly a month on the expectations cyprus will reach some kind of a deal over the weekend but today's gains came up post posting a weekly loss, a weekly loss. today woos good. the dow falling into the red for the first time in five weeks, while the nasdaq and s&p 500 snapped three straight weeks of gains. consumer step peltz and telecom were this week's top performing s&p sectors. natural gas falling into the red but closed the week higher. prices rose more than 1% a week after the energy information administration reported a smaller than expected decline in last week's u.s. inventories. oil pushing higher today to post its third weekly
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gain in a row. crude ending the trading day up 1.4% at $93.71 a barrel. shibani: we'll tackle these markets now. we have tim mulholland in the pits of the cme. after acampora, at altera wealth management. jim dunn began of pnc wealth management vice president. let he is start with tim. cyprus was the word of the day today. how did it fare down in the pits of the cme and what are you preparing for later on in the weekend? into when you came in you saw italian bond, spanish bonds, yields declining. that indicated optimism there would be some agreement. 11th hour agreement on monday. despite the markets take more of a sort of a yawn with cyprus as opposed what we saw with greece and last year with the concerns of spain and italy. if it were spain and italy it would be a little different. the market has some optimism
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as you can tell you about the price action today going into the weekend. david: is there any --, i don't want to rain on the parade but is there any danger about being too complacent on things over there? >> the way the market is set up, the what you commented earlier what gets thrown at it comes back, when the fed buys $85 billion a month in treasurys and continuing zero interest rates that is what is happening. people with the blase more attitude this is offshore, nonresident russian money at risk rather than the average cypriot citizen. i think that might be another reason the market is shrugging it off to a certain extent. shibani: tim, there is always the risk something could fall through. we've seen that happen before with greece, spain italy the list goes on and on and even happens in our own country. is there anything you heard in the word around you positioning just as a hedge because of that uncertainty factor? >> if anyone wants to position to hedge risk,
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options are cheap, near dated options. look at vix and volatility it as low as it has been in seven years, five years, six years. that is one way to hedge it. there is more concern on at this time alley -- italy forming a new government. last three years we had the o in the first quarter only to see in april and may a curveball is thrown at us. that might be in the back of traders mind. david: a new government in italy. what a shock and surprise? only happens about twice a year. shibani: a lot of deja vu going on. tim, we'll check in with you with a few minutes to see how the s&p futures pit closes. david: thanks, tim. let's bring in the market panel with ralph and jim. great to see you. happy friday. jim, first to you, no matter what you throw at this market it keeps climbing. do you think it continues throughout the year? are we going to be closing out the year at new highs? >> david, i think we make
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new highs but i'm not sure we would close out the year at new highs. we'll see a higher market in here, but i think we'll probably consolidate something below that and close the year but it will still be a very good year for the equity markets. as you point out complacency in my experience does not make good investment policy. so it is still a market that investors need to be aware of what is going on around them to make important choices as part of that but the path of least resistance at least for the time being appears to be up. shibani: ralph, i was looking at your projections for the s&p 500. you're looking for 1650 this year. we're a long ways away from that. how are we going to get there? what will sort of move us to that trajectory? >> i think the motions are already in place. when you get a shock like cyprus there is an old addage on wall street, when things go down the least, they're the leaders. in other words in this shock that we had with cyprus the emerging markets broke down, almost all of them but the u.s. markets held up very, very well. i have been very positive on
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the market and i see no reason to change. as far as sentiment is concerned, that's a recent phenomena that you are starting to get bullish investors. but if you look at the green shoots that are developing and the fact that there is so. cash on the sidelines and so many professional portfolio managers have underperformed, i just think we're going a lot higher. david: by the way, jim, ben bernanke talked about this on wednesday. we talked about it before too. we talk about highs. inflation adjusted the market, the dow would have to be up to close to the 16,000 in order to be where it was back at the previous highs of 2007. so, you know, presumably we haven't met those new highs but i'm just wondering if perhaps there is no place else in the planet to invest but here? you think of all the problems around the planet. zero interest are here to stay at least what it seems for what bernanke says for the rest of the year. doesn't that mean in some ways, equittes are more safe
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than fixed income right now? >> there is no doubt. you raise a good point but on investment thesis if there are no other all the turntives besides equity it may make me a little afraid. you're right, valuations where we are, prospects for improving earnings we'll start to see that next couple weeks of earning period starting. no doubt we're in an artificial period of interest rates with the fed supporting both in bond purchases and low short-term rates that there are, is a lot of risk in fixed income. i think a lot of investors continue to use fixed income as a proxy for money market. there's a point where that will no longer be a good why. you will start to see some dislocations in that market as interest rates start to go up and they will start to go up. shibani: ralph, to david's point, sometimes being the best of the worst can be an attractive thing and draw people into the markets. i know you have a couple picks. walk me through what you're buying into right now. >> i like financials for
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some time and they seem to be the leadership. if i had to pick one stock is bank of america by the way is a dow component. my second one would be industrials. i like that sector also. it has done, very, very well. the one stock in there that i would pick out is ge and that's also another dow component. most of the dow stocks look pretty good to me. david: jim, i know you don't go into for particular stock picks but in any particular sectors you're afreuding -- avoiding now that are too frothy? >> we would staytae way from those interest sensitive. utilities would fall at that category at the top of the list. david: by the way if you're against interest rate-sensitive stocks would that include the banks? >> banks are probably well-positioned to raise their dividends here. so, if in fact rates go up that would be positive for bank balance sheets and many of them passed the stress test as you know recently and are starting to increase dividends. an increase in the interest rate environment for the banks would be positive for
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the bottom line. shibani: ralph, what about you? anything you're staying away from and you wouldn't touch with a 10 foot pole? >> i mentioned it before the emerging markets have been lagging. i think it is too early to buy into emerging markets. i think part of that problem is the fact that there is a question about growth and, as a result of that, you have a lot of the commodity not doing very, very well like steel and copper and things like that. i think i would avoid that for a while. shibani: all right, ralph and jim, thank you very much for joining us today. david: thanks, gentlemen. happy weekend. >> thank you. >> you too. shibani: leaders of the european union are locked in bailout talks as the clock wind down for the country to raise 5.8 billion euros in order to receive a much-needed bailout. we'll go live to the heart of all the action to cyprus. david: how many people would buy that country right now, speaking of cyprus, the idea of confiscating people's income after already been taxed sent a chill far
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beyond cypress. could that happen here? that is question we ask steve forbes, fox chairman and editor-in-chief. he has thoughts on that you don't want to miss coming up on the "countdown to the closing bell" -- "after the bell" [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone
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david: five seconds away. s&p futures are closing let's head back to tim mulholland in the pits of the cme. what are you see, tim? >> we're closing near the highs. slow volume day. next week is the first week of the -- last weeks of the first quarter. so i think that we're looking at some regional fed manufacturing indexes, and end of the quarter. this market sits back a little, one step back, two steps forward. david: everyone wants to it is friday. everybody take a breath. tim, thanks very much. >> sure. shibani: shares of grocery conglomerate supervalu are
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soaring today. let's head back to the floor of the new york stock exchange and sandra smith with the latest. sandra? >> hey, david, hey, shibani. investors of supervalu the supermarket chain are breathing a fresh air as the stock is trading over 15 million shares. the basically the grocery store chain announced it closed a many could plex deal where cerberus capital management led group slimmed down the supermarket portfolio of this company. they shook up the board. they shored up finances. came in there as big investor along with supervalu it clean things up. investors applauding the deal. the stock hitting the highest level since summertime. even though it issued 42.5 million new shares to cerberus and its partners. so a big deal announced and the stock getting a big boost on this friday. back to you guys. david: thank you, sandy. leaders in cyprus are still working to hammer out a deal to raise $8.5 billion euros in order to receive a
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payout bailout from the eurozone and imf. shibani: they're talking about a possible tax or levy on bank deposits over 100,000 euros. meantime cyprus banks remain closed until tuesday and fox news's greg palkot is live in cyprus on the phone. greg, i saw your report last hour, at least the atm near by you, opened up, was working. what is sort of the buzz around you? are people continuing to flood to try to get their money out of the banks? >> absolutely. that atm started working again about 45 minutes before we went on the air and we talked to one person who had been to 20 different atms to try to fet money today and all of them were empty. people are desperate. they are angry. and, worse. big protests outside of the parliament tonight here in nicosia. the latest word we're getting on debate and possible vote tonight innthe parliament is that, the
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cypriot officials are trying to come up with this last-ditch plan to satisfy the european union to stump up some money so the european union will stump up more money to avoid them from going into bankruptcy. central to it is the hiding off of bad deposits and good deposits from one of the big banks here. basically shutting down one of the banks. also, highly controversial the control of financial actions. that is, the limiting of transactions occurring here on this island once the banks do open up on tuesday. it is thought. and that is thought to be a real interesting one for folks to watch. off the table apparently nationalizing state pension fund. even german officials today said, hey that will get people upset. but back on the table, and this is new today, the controversial approach to actually tax, actually to put levies on to private bank accounts. of course that caused such a
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stir earlier this week, it was shot down by the parliament here but now it is being revisited as they try to stump up this money and maybe apply to larger bank accounts. what we're getting finally here is that there could be some folks tonight on some aspects of this, some vote tomorrow. if a plan is put together, we are told, that the president here of cyprus, and other officials will go to brussels directly tomorrow to try to present the plan. back to you. david: is there any chance, greg, this is david asman. any chance at all they will keep the banks closed and just keep using the atm machines? >> the plan is, david, to get the banks open as well on tuesday, but i got to tell you, and for our viewers we should look closer at this. what they basically say with the controls of transactions limits on how much money you can take out of the bank, once the banks are open, that the euro currency used on this island will change in quality, compared to the
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euro used elsewhere. a very controversial element to this bailout plan. >> wow! that is fascinating. we may have two different kind of euros based on what is happening that could happen in italy and spain. greg palkot, great reporting. thank you very much. coming up on monday our own rich edson will be live in cyprus bringing you all the latest developments on this continuing crisis. we have it well-covered here at fbn. shibani: call it papal bond plays a catholics turn to the south for spiritual leadership. one analyst says look to the south for portfolio boosting bond place. he will tell you where to place your bets ahead. david: plenty of advice from heaven. it may be cold but springtime in the real estate market in downtown manhattan. it is staging a skyscraper high comeback following hurricane sandy. we'll talk to a developer who signed almost 600 million in sales this month alone. that is next. ♪ . a timeout because apparently
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shibani: following hurricane sandy last fall, many new york city brokers feared it would negatively impact the real estate market in lower manhattan but two major skyscraper projects already brought in close to a billion dollars in sales just this month alone. that sound pretty good. david: it does indeed. has spring finally sprung for the real estate market following hurricane damage. we have one of the developers of one. buildings. you own the woolworth building. used to be highest building in the world. >> yes it was. 1911. david: pull this back. sandy was awful and devastating but i think at no time did the city suffer more in my lifetime than after the 9/11 attacks. then people said it will never recover.
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lower manhattan particularly will never recover in real estate. is it same kind of phenomena the resilliance of lower manhattan continues to show its face no matter what happens? >> yes. i was there at 9/11. we were discussing it. i was in the rescue effort. david: did you ever doubt lower manhattan would come back? >> not one time. when you witness the esu cops and rescue people on top of the heap. i was there that evening with a dear friend of mind. i had no doubt. david: sandy, you had no doubt we would come back from that as well? >> i was at my 10th street property all that entire evening and the next day. i had no doubt. shibani: a lot of people that were, we know that a lot of people called into question whether or not the manhattan real estate market will ever be as vibrant as it was before the financial crisis for sure but it seems like it is coming bam. what is the driving resurgence you've seen? a billion dollars in sales the last few weeks. sounds like business is pretty good? >> it is good. new york city is a
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incredible place to live. it is crime-free. it, there are jobs now again. technology jobs. and interest rates are cheap. david: we sold, we sold, out -- >> we sold at a velocity we never predicted. in 4 1/2 weeks, close to $600 million in sales. that is nothing short of incredible. >> is it just unique to new york? just the nature of manhattan, particularly lower manhattan, or this is something you think we see signs of green sprouts coming up all over the real estate market? >> personally see the green sprouts. we're active developing in miami and we're seeing quite a bit in miami. new york is probably more pronounced. david: miami is not only mostly cash or at least heavily cash but a lot of foreign money in there too? >> it is a cash market. they have huge traction from the latin american market but plenty of traction also from europe, from russia and you think from new yorkers
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too. plenty of my friend buying down there. shibani: who are the buyers here? we saw in 2008, 2010, a lot of chinese buyers were coming in. a lot of european buyers were coming in. we want americans and new yorkers to be buying here, right? >> this project, 150 charles, is exclusively new yorkers. we have a familis. no speculators. we frowned upon them. interestingly enough we have no foreigners. i think the reason is is that the families just found this project. it's a large, these are large apartments, very suitable to families who want to live in the west village. >> i don't want to rain on the parade. this is wonderful news but in addition to rentals going up, that is one reason why people choosing to buy instead of rents because rents are so high, property taxes gone up quite a bit. i own a couple properties in manhattan. my taxes have gone up. does that concern you? could that squelch the growth of this market? >> i think higher taxes always concern me. it can be an onerous burden to people and i think at
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some point in time it is problematic but i don't think we've reached that point quite yet. new york city is a fabulous place and you pay something to live here. i remember sitting with the mayor and that's what he said in front of the real estate executive committee and i subscribe to it. at some point though it does reach a tippingpoint. shibani: steve, thank you very much for being with us. it doesn't hurt that you've got some of the primest location spots in the city. charles street. used to live on it. that is the heart of the west village. certainly can't hurt to be in those places. >> thank you, shibani. david: the woolworth building is fantastic. if you come to manhattan you have to go to the woolworth building. real historical site. >> thank you. david: steve forbes, who is behind the bank confiscation plan in cyprus. whether or not this might become another european import by some of our euro loving policy-makers. shibani: pepsi is having its first bottle makeover in 17 years. we'll show you exactly what it is going to look like
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shibani: time now for a quick speed read of some of the day's other headlines, five stories one minute. here we go. first up, honda is recalling 76,000 acura tsx models in the u.s. and canada for a stalling problem. the recall affects vehicles from 2004 to 2008.
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no crashes or injuries relate the to the problem have been reported. apple is running a u.s. largest data center in north carolina on roo renewable energy. the majority of the power is generated from solar power and fuel cells. windows phone 8 devices making their app ad-free until 2014. royal caribbean international is scaling back ships in europe next year. the company plans to deploy own eight of its 20 two vessels. pepsi rolls out new design of its 20 ounce bottle first time in 17 years of the bottom half appears to be easier to grip and label is smaller to make the drink more visible. that is today's speed read. i didn't think i was going to get it of the. david: you can talk for another three seconds but is generous and gave me the time. last weekend cyprus was given an ultimatum by imf and euro crats confiscate
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income or forget about getting a bailout. the idea that the money could be confiscated struck many in the u.s. that couldn't happen here but many european ideas are filtering into the u.s. of late. could this filter in as well. we asked steve forbes, "forbes" media editor-in-chief and star of "forbes on fox" every saturday at 11:00 a.m.. >> i take after you, david. sure. david: could it happen here. a lot of people say forget about it? what do you think? >> could get variations. got, 1933 government took people's gold. took it out of their hands. gm bile youth, bondholders were shafted. you hear talk about doing things with 401(k)s, integrated with social security or since they were put together tax-free. how about the roth ira's? you're supposed to get money out of that tax-free. they could change that. all this does in cyprus,
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what happens there is small country, if things get dice sir, there is emergency, unthinkable suddenly becomes thinkable. that breeds panic. david: it has happened here. there is something really anti-amerrcan. it is within the constitution, there are guaranties to private property. of course when ever they try to do it here there are challenges that make their way to the supreme court. isn't, wouldn't there be sort of a popular uprising against that action? >> there would be a popular uprising but you don't know what happens when you have a panic. they don't call them confiscation. they call them a tax, a one-time levy, turning your deposit into equity. david: by the way i always change the word tax to confiscation because if you have already earned the money, if you already paid taxes on it is your property. >> look at social security. they did it with social security. you pay your contributions, you're forced to with after-tax income. the deal was use after-tax dollars. they take after-tax dollars from you, and then you get a tax-free when you get the benefits.
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well starting 20 some odd years ago they changed at that. that a lot of people, millions of people pay tax on social security benefits. they broke the original deal. the government changes rules all the time. how about inflation? the federal reserve wants 2 1/2% inflation. that is equivalent of 2.5% tax lowering your income. >> they just raised it a half percent to 2 1/2%. >> so what that means is, your real income goes down. so, especially lower income people get of the shafted because they pay more for food and fuel and electricity. and so their incomes go down. that is supposed to stimulate the economy. the fed can do it without legislation. david: when you think of all the different ways which this administration, obama administration is almost transfixed by the european model, whether it is in health care, obamacare, whether it is in the vast increase in the social welfare state, i'm just wondering if they now are looking to europe as a model for what to do with us? now we haven't reached,
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obviously we're far away from the cyprus kind of crisis dimension of crisis with our debt problems but if we move closer to them, would we borrow from those solutions if you will? >> they will certainly look at them. thankfully our banking system is much better shape than the european ones. look what they're doing with dodd-frank? those regulations are so extensive, so vague, smaller banks are really under the gun. the administration likes the idea of having a handful of big institutions, make it easy to regulate. doing same thing in health care. david: they claim dodd-frank is about ending too big to fail. >> it codifies it. no regulator would say i'm asleep at switch when something happens. they will hold hearings with jpmorgan, trade goes bad, your fault and they take it over. david: sort of switching on the same gear, but sort of switching gears a little bit, "the wall street journal" on the front cover, has a piece, health insurers warn on premiums. obamacare was not supposed to cost a dime in famous
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words of the president. we're hearing health care premiums may double next two years as a result of obamacare. if that happens will we see a revolt here against the european model applied to our policy? into this is why i'm an optimist because there will be a revolt. we saw it in 2010, sadly because of our nominee in 2012, governor romney, gop nominee, he couldn't use obamacare as issue. as people find out more and more, look what is happening to the tax on medical devices. senate overwhelmingly to repeal it, including 33 democrat senators voted for it. as popular opinion starts to weigh in you will see uprising. administration will be very tempted to use european solutions. think that will set them up for real smackdown in 2014. david: steve forbes portfolio, are you 100% stocks now. >> retirement fund, always invested. ride the storm. if you ride the market you will get whipsawed. i ride the wave. david: good advice. steve, see you tomorrow at
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11:00 a.m. on fox news channel. >> terrific. david: shibani. shibani: prices for u.s. farmland have been paradise not only for farmers but investors with prices doubling since 2009. the rapid rise has some wondering if the next bubble to burst isn't on wall street but in fact in the heartland of america? jeff flock will join to us have that story. david: also it is he portfolio indicator. a top strategy tells us why ditching the east and heading south for your investments like the vatican just did could be the divine intervention your portfolio needs. ♪ . investor. yeah, i'm a serious vestor but i'm a busy guy. it used to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i want to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of tenls choose ishares for their etfs.
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suddenly, faraway places don't seem so...far away. ♪ david: time for your fox business brief. stocks pushed higher on optimism a deal to bailout cyprus will be reached. today's gains came up short with all major indices
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posting a weekly loss. at closing bell the dow finished 90 points higher. boeing is planning to lay off 800 commercial jet workers by the end of the year according to dow jones. the plane maker looking to reduce the workforce in washington state by as many as 2300. good year building the first of the new generation of iconic blimps. the blimps will be assembled in the company's headquarters in akron, ohio. it will take up to seven months and air certification and crew training planned for next year. they have operated more than 300 lighter than air operated vehicles since 1917. that is the latest from fox business, giving you the power to prosper. have a wonderful weekend.
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shibani: well, after two months of waiting, research in motion's new blackberry hit the united states and its storefronts today. the z10 is backed by blackberry's big marketing
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budget ever for a product and mostly met with positive reviews. the stock? well it opened to the upside this morning before taking a big dive in late afternoon trading. "wall street journal" is reporting that at&t stores don't appear to be highlighting the phone on its launch day or giving it some prominent shelf space. the stock however, is still up 27% year-to-date. 20 7% also short interest in this company's stock, david. meaning that investors are expecting this stock to take a big dive down because they just don't believe in the revival hopes of that device is going to provide. david: this is one i just got. i guess it is old. shibani: just got this? david: i know it is old. this compares very poorly to my previous blackberry. this device, the cursor mover doesn't always work as planned. of course it is now because i don't want it to. behaves just like a cat. there are a lot of things about this i'm happy about it. i heard a lot of sentiment. if you come out with
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products that don't make people happy doesn't that mean your company is going down? shibani: it had pretty good reviews. a million orders it ever received before the launch date. pretty strong in europe, canada, other places. i think this will be a long term story. like we know it is a hit in a month or a week. this will be a long term thing but the end result may be it gets bought out. david: did we ever found out where the million eye e -- item order came from? shibani: we don't know government entity or a corporation. david: but it wasn't made up? shibani: no it was not. we'll hear in the earnings report. david: the federal reserve announced they will continue the bond buying program keeping long-term interest rates low. is there any way to make money in fixed income? shibani: our next guest says, calling by using what he calls the papal indicator. joining me, jack mcintire, portfolio manager research analyst at brandywine global. let's start off talking about what exactly the papal indicator is?
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it may be good for picking popes but what about picking assets? >> i think we look where we're invested we want to put money to work to put money in fixed income. we have money in italy right now. we're in some peripheral european markets, ireland, portugal. we think there is attractive yields. we have cyprus out there. we know about that event. in my notes, cyprus equals vermont. looking about the same, sort of economic size that is out there. we don't think cyprus, the he will havements there will really de -- derail some of the positive developments unfolding in the peripheral eurozone bond markets. david: jack, let me take one country in particular mexico. because i've been reading a lot howe they're cracking down on some of their legendary corrupt union leaders. they're doing other things to release the supplyside of that economy to let businesses work with greater
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freedom. is mexico a big hit as far as you're concerned? >> it is. i talked a little bit the eurozone peripherals. there is opportunities there. but probably better opportunities in latin america and mexico is probably the lead on that. we've been building out positions in mexico over the last year. you're absolutely right. they're one. few countries that sort of is embracing supplyside economics. moving down this path of reforms. breaking up monopolies. david: including union monopolies. >> exactly. one of the key things to be on the lookout there, if they do that in the energy industry and bring in foreign capital to that particular energy industry think the peso would be incredibly stronger. shibani: talk about the entire fixed income assets. we know the fed will continue to juice up the system until at least 2014. a lot of people shy away from the category because they don't think they can make a lot of money. how can they though? >> i think that would be a mistake to shy away from all
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fixed income. you can shy away from treasurys. treasurys will not probably be doing much of anything as long as the fed is committed to qe. there are opportunities away from the u.s. we've been putting money to work as i mentioned mexico. brazil still has very attractive yields. chile we're invested in there. we think currency has room to appreciate. you have to be a little more selective where you want to invest some of your fixed income assets but it will not be in japanese government bonds, german bunds and treasurys. away from the particular markets there is opportunities to generate returns. shibani: what yields are you chasing? are you talking one or 2% or are you talking about something greater? is that even possible? >> it is definitely possible. the nice thing you're doing that without taking on more credit risk. look where have been the credit crises ovvr the last four or five years. it has come from the developed world. it has not come from the developing world. that is out there. so, yeah you're picking up additional yield. but on top of that there is
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also room for the currencies to appreciate. these are countries that have much stronger balance sheets than what we see in and in japan in particular.. david: you mentioned japan as a country to avoid for fixed income? what about china? are you concerned china might have seen its day? >> no, i think, making money on bond in china is going to be a little bit more challenging. there is probably room for the currency to continue appreciate but there is better ways to make money via china. china has a huge footprint in the global economy. that is not going to change. we want to be in countries that are going to benefit from that, that have a positive trading relationship with china. so it goes back to some of the latin american countries. china is brazil's largest trading partner. if china will do well, then brazil will do well on the export side. david: you talk to investors that go to emerging markets. they say chinese investors are everywhere. they are absolutely everywhere. they are investing a lot of cash in these places. good enough for them,
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probably for us too. good to see you,. >> being thanks very much. >> my pleasure. shibani: speaking of good times down on the farm as farmland prices have doubled since 2009 but with the rapid growth that it's seen some people are out there are wondering if this boom is about to go bust. who else do we have but jeff flock in the heartland with that story. >> shibani, from a top a grain bin in bundy county illinois. this could all be years. 180 acres goes on auction form tomorrow morning first thing. i'll tell you why you should think about buying this in a moment. ♪ . thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta isooking beyond.
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shibani: well u.s. farmland prices have doubled since 2009, hitting over $20,000 an acre in some parts of this country. the rapid rise has some wondering if this could signal a bubble is brewing in america's heartland? david: jeff flock is down on the farm in grundy county, illinois. he is off the silo, down on the ground. what are you seeing there, jeff? >> spent a day poking around in the dirt on that very issue, could this be a bubble? this is dirt here and i'll tell you this dirt is not cheap. as you point out it has been
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appreciating. this is a farm of about 180 acres in grundy county, illinois. it goes on auction tomorrow. take a look why farm prices, farmland prices are at all-time highs. take a look at corn prices and soybean prices. last year, this year, two years ago, tremendous rise in those prices. that has what has underpinned this tremendous run-up in crop land prices. if we look at a map, all around the country, mainly in the midwest you see how much of a rise we've had just in the last year. illinois 18%. indiana, 10%. iowa, 20%. it's been a huge run-up. talking to folks out here today, not only farmers but lenders and even an auctioneer who auctions the land off, i don't think there is bubble. we didn't have a big bubble when the real estate boom hit before. we talked to one of the auctioneers of the he told us some of the tools of his
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trade. you roll right up and there you go. >> we have a pa. our auctioneer and our clerk is in it. we have heat for the winter months. that is how we do our business. >> can you give me a little taste of a little auction there. >> a little wick one would be 25, 35, 45. sold out it there, $45. >> this may sell for a lot more than $45. >> like you would. it is excellent piece of property. >> this piece of property might be somewhere around, 9, $10,000. maybe high as $13,000. this isn't the best of the land out here. i can tell you, david and shibani this is rent, somebody is already running this land for $290 a acre. if you invest 9,000 you get 290 a year back plus the ground. they're not making anymore of this i've been told. that's what we're hearing as well. david: interesting that you can, probably have a farm without waking up at 3:00 in
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the morning to dot farming. >> that is the best kind. what is the green acres for you, oliver and what is her name? shibani: looks beautiful out there. jeff flock, thank you. david: coming up a beatles album autographed by all four members of the band is up for auction. still time to place the bids. how much are the bids going for? we'll tell you straight ahead on "after the bell." impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before inveing. with investment information, risks, fees and expenses today is gonna be an important day for us. you ready? we wanna bour brother's keeper.
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